Dragon Oil profits from production surge

Source: Energy Digital

Date :05/03/2008 10:47:15

Irish oil and gas explorer Dragon Oil today said that profits had climbed by 84 percent to $597 million last year as oil production rose by well over 50 percent.

Operating profits at the firm rose by 65 percent to $365 million in average gross production that rose to 31,997 barrels of oil per day (bopd).

"The Group had another excellent year, achieving a number of significant strategic and operational milestones and benefitting from the favourable oil pricing environment. Dragon Oil's producing asset in the Cheleken Contract Area, in the eastern section of the Caspian Sea, continues to perform strongly with our employees in the field demonstrating commitment and hard work, often in difficult operating conditions,” said executive chairman Hussain M. Sultan.

“These solid financial results underpinned ongoing investment in the development programme, and helped to secure the first step towards greater portfolio diversification," he continued.

Gross production in 2007 reached a new record 11.7 million barrels and average realised crude prices during the year were $70.9 per barrel compared to $61.4 in 2006, contributing to a 75 percent rise in gross profit over the previous year.

March 5, 2008